Energy and natural resources
AISC (all-in sustaining cost)
A gold miner's full cost to keep producing an ounce, including sustaining capital.
Facts checked against sources onWhat does AISC (all-in sustaining cost) mean?
All-in sustaining cost is a measure used mainly in gold mining, defined in guidance from the World Gold Council. It adds to cash operating costs the other costs needed to keep current production going: sustaining capital spending, royalties and production taxes, head office costs and some exploration. It leaves out spending on growth projects. Example: cash costs of 900 an ounce plus sustaining capital of 250 and royalties and overheads of 150 give an AISC of 1,300 an ounce; at a gold price of 2,500 the miner earns an all-in margin of 1,200 an ounce. Because it includes sustaining capital, AISC is a better guide to cash generation than cash cost alone.
Where does it come up in case interview prep?
Related terms
- C1 cash costA mine's direct cash cost to produce one unit of metal, after by-product credits.
- Cost curve (industry supply curve)All producers ranked from lowest to highest cost, showing who is the marginal producer.
- Free cash flowCash from operations minus capital expenditure.
- Barrel of oil equivalent (boe)A unit that converts gas into barrels of oil by energy content, so oil and gas can be added together.
- Lifting costThe cost of producing oil or gas from wells that already exist, per barrel.
- Full-cycle breakevenThe oil price a project needs to cover all its costs, including building it, and earn its required return.
- Fiscal breakeven oil priceThe oil price a government needs to balance its budget.
- Crack spread (refining margin)The gap between the price of crude oil and the prices of the fuels made from it.
Learn it in context
See AISC (all-in sustaining cost) at work in a lesson from Mining and metals, with checks as you go.
Spotted something wrong or out of date? Report a mistake. We check every report and correct the page.